HEXPOL AB (publ) Just Missed EPS By 7.3%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that HEXPOL AB (publ) (STO:HPOL B) filed its yearly result this time last week. The early response was not positive, with shares down 9.0% to kr91.85 in the past week. Revenues of kr20b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr6.45, missing estimates by 7.3%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

After the latest results, the five analysts covering HEXPOL are now predicting revenues of kr21.2b in 2025. If met, this would reflect a modest 3.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 10% to kr7.10. In the lead-up to this report, the analysts had been modelling revenues of kr21.4b and earnings per share (EPS) of kr7.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for HEXPOL

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr115. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic HEXPOL analyst has a price target of kr130 per share, while the most pessimistic values it at kr108. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that HEXPOL's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that HEXPOL is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr115, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for HEXPOL going out to 2027, and you can see them free on our platform here.

You can also view our analysis of HEXPOL's balance sheet, and whether we think HEXPOL is carrying too much debt, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.